Is Florida the right place for your start-up? Why should you register a new company in Florida? Does the state provide excellent benefits to new businesses?
Geographically, Florida may be known as the Sunshine State and economically, it is just as good for businesses. Today, it is home to 2,180,556 small businesses with 61,848 businesses conducting international trade successfully. LLC and Corporations exist in the state and have been performing well because Florida business laws are flexible.
Whether you have an LLC startup company in Florida or a Corp., the state provides several initiatives and advantages that will benefit you and your business in the long run!
Bottom-line Advantages for New Businesses
We can help you register a new company in Florida, so that you can leverage the bottom-line advantages of state business policies. These will ensure long term profitability for LLC, Corporations, Partnerships etc. Let’s take a look at some of the advantages:
Advantage#1: Incentives for business growth
The opportunities for success in the state are truly limitless thanks to a variety of incentives being offered to startup companies in Florida. The primary incentive being offered is known as the “Targeted Industry Incentives” and it can be classified under two programs, which are:
- Qualified Target Industry Tax Refund (QTI): The QTI incentive has been created for businesses that have the ability to create high wage jobs especially in industries promoting high value-additions. An integral part of this incentive is refunds that you can derive on sales, corporate income, intangible personal property, ad valorem, insurance premium, as well as other taxes. The QTI plays an important role in ensuring that when you register a new business in Florida, you can benefit from tax refunds of $3,000 for jobs created in the city and almost $6,000 in refunds for jobs created in a county.
- Capital Investment Tax Credit (CITC): If you are planning to start a capital-intensive industry then this is just the type of incentive you need. It is more of an annual credit against corporate income tax, provided to businesses for a period of up to 20 years.
There are several other incentives as well like Incumbent Worker Training Program (IWT), Rural Incentives, Brownfield Incentives, and Quick Response Training (QRT) among others.
Advantage#2: Florida Tax Benefits
Tax benefits play a crucial role in attracting new businesses to the state. When you register a new business in Florida, you will be able to benefit from the highly stable as well as favorable tax climate the state offers. Some of the benefits include:
- No corporate income tax on subchapter S-corporations and Limited Partnerships
- Exemption of capital stock from corporate franchise tax
- Exemption of business inventories from property tax
- Exemption of goods-in-transit from property tax for a period of 180 days
- Exemption of any goods produced or manufactured in Florida specifically for international trade from Sales and Use tax
- Businesses can benefit from sales and use tax exemptions on machinery and equipment for R&D, certain types of boiler fuels including natural gas, machinery and equipment used for expanding business, and much more.
- When you register a new company in Florida, your business can benefit from pass-through taxation under which businesses are not taxed as it gets passed on to the individual.
Are there any Disadvantages of Incorporating in Florida?
You must be wondering whether there are any disadvantages for new businesses in the state of Florida.
The truth is there are a few but they will not have any impact whatsoever on business expansion and growth. One of the disadvantages is limited flexibility in ownership transfers. The second disadvantage is that when you register a new company in Florida as LLC, you will have to pay a higher fee as compared to forming general partnerships or sole partnerships.
The bottom line is that the state of Florida provides everything right from infrastructure to economic stability, and business friendly laws. If you are planning to establish a startup company in Florida then it is the best business decision you can make!